Posted on: 04th Jun, 2010 11:20 pm
Does borrowing money from your own 401K to purchase a car count as incurring new debt?
What are the consequences of not obtaining court approval to incur debt?
What are the consequences of not obtaining court approval to incur debt?
Hi bjthurston,
As far as I know, most of the lenders will count the money taken from your 401k as a debt. You can take money out of your 401k and do not need the permission of the court for that. However, if you withdraw the money from your 401k account before the age of 59 and 1/2 years, then you would be liable for taxes.
Thanks,
Jerry
As far as I know, most of the lenders will count the money taken from your 401k as a debt. You can take money out of your 401k and do not need the permission of the court for that. However, if you withdraw the money from your 401k account before the age of 59 and 1/2 years, then you would be liable for taxes.
Thanks,
Jerry